Under Section 127 of the legislation, the Department of Veterans Affairs (VA) will now have the authority to offer assisted living settings as an alternative to traditional nursing home care for aging and disabled veterans. This provision is particularly significant because it addresses the growing needs of an aging veteran population while providing a more cost-effective and personalized care option.

The inclusion of this pilot program is rooted in bipartisan efforts. The provision itself stems from the Expanding Veterans’ Options for Long Term Care Act (H.R. 1815 and S. 495), which sought to provide veterans with greater flexibility and choice in long-term care options. The push for this legislation was heavily influenced by a 2021 VA report to Congress highlighting the projected demand for Long Term Services and Supports (LTSS). The report underscored a startling statistic: the percentage of veterans aged 85 or older eligible for nursing home care is projected to grow by nearly 535% over the next two decades, increasing from 61,000 to 387,000.

The Economic Case for Assisted Living

One of the most compelling arguments for expanding access to assisted living lies in its cost-effectiveness. According to the VA’s 2021 report, the annual cost of nursing home care (known as Community Nursing Home or CNH placement) was $120,701 in 2020. In contrast, the average annual cost of an assisted living placement was $51,600—less than half the expense.

This cost differential translates to significant savings for the VA. For each veteran placed in assisted living rather than nursing home care, the VA could save approximately $69,101 per year. With the anticipated surge in the number of veterans requiring long-term care, these savings could amount to billions over the next two decades. Beyond the financial benefits, assisted living also offers a higher quality of life, with settings that promote independence, community, and individualized care—a win-win for veterans and taxpayers alike.

As the bill heads to President Biden’s desk, confidence runs high that it will soon become law. The establishment of the pilot program will not only expand access to assisted living but also serve as a proof-of-concept for future policy decisions. Argentum believes this program will demonstrate the immense value of assisted living as a long-term care option and pave the way for broader implementation.

Why Assisted Living Matters for Veterans

Assisted living offers a unique blend of independence and care, particularly for aging and disabled veterans who may not require the intensive medical services of a nursing home but still need support with daily activities. In assisted living communities, veterans can enjoy:

  • A Home-Like Environment: Assisted living communities provide private apartments or rooms, fostering a sense of dignity and autonomy.
  • Personalized Support: Staff assist with activities such as bathing, dressing, medication management, and meals while allowing residents to maintain as much independence as possible.
  • Community and Socialization: Loneliness and isolation are significant concerns among older adults, including veterans. Assisted living communities offer social activities, outings, and opportunities for meaningful connections with peers.
  • Cost-Effective Care: As highlighted earlier, assisted living delivers quality care at a fraction of the cost of nursing homes.

For veterans who have served their country, access to assisted living represents not only a practical solution but also a way to honor their service with care that respects their independence and needs.

So What Comes Next?

With the bill poised to become law, the next steps involve implementing the pilot program and ensuring its success. Argentum has pledged to work closely with Doug Collins, the Secretary-designate of the Department of Veterans Affairs, as he prepares for his confirmation and subsequent leadership of the VA. This collaboration will focus on promoting assisted living as a viable and cost-effective option for veterans’ long-term care.

The program’s success will be measured not just in cost savings but also in improved quality of life for participating veterans. Data and outcomes will provide valuable insights and pave the way for broader adoption of assisted living as a standard option within VA long-term care programs.